Super Finance Glossary

Finance

Over 10,000 financial glossary terms...

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Browsing by the letter "T"

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Tax Haven Affiliate
Definition: A wholly owned entity in a low-tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986.
Tax Holiday
Definition: A reduced tax rate that a government provides as an inducement to foreign direct investment.
Tax Liability
Definition: The amount in taxes a taxpayer to the government.
Tax Liability (or Total Tax Bill)
Definition: The amount of tax that must be paid. Taxpayers meet (or pay) their federal income tax liability through withholding, estimated tax payments, and payments made with the tax forms they file with the government.
Tax Lien
Definition: The right of the government to enforce a claim against the property of a person owing taxes.
Tax Loss Carryback, Carryforward
Definition: A tax benefit that allows business losses to be used to reduce tax liability in previous and or following years.
Tax Planning
Definition: Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer.
Tax Preference Item
Definition: Items that must be included when calculating the alternative minimum tax.
Tax Preparation Services
Definition: Firm that prepare tax returns for a fee.
Tax Preparation Software
Definition: Computer software designed to complete tax returns. The tax preparation software works with the IRS electronic filing system.
Tax Rate
Definition: The percentage of tax paid for different levels of income.
Tax Reduction Strategy
Definition: A source of competitive advantage that depends on differences in the tax rates imposed in different locations.
Tax Reform Act Of 1976
Definition: Legislation aimed at tightening provisions relating to taxation, including changes in the capital gains tax laws.
Tax Reform Act Of 1984
Definition: Legislation enacted as part of the Deficit Reduction Act of 1984 to reduce the federal budget deficit. Among its provisions are a decrease in the minimum holding period for assets to qualify for long-term capital gains treatment from one year to six months.
Tax Reform Act Of 1986
Definition: A 1986 law involving a major overhaul of the US tax code.
Tax Refund
Definition: Money back from the government when too much tax has been paid or withheld from a salary.
Tax Schedules
Definition: Tax forms used to report itemized deductions, dividend and interest income, profit or loss from a business, capital gains and losses, supplemental income and loss, and self-employment tax.
Tax Selling
Definition: Selling of securities to realize losses that will offset capital gains and reduce tax liability. See: Wash sale.
Tax Shelter
Definition: Legal methods taxpayers can use to reduce tax liabilities. An example is the use of depreciation of assets.
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